LEP(SH:600644)2022-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 1,488,631,828.95, representing an increase of 18.42% compared to CNY 1,257,030,423.79 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2022 was CNY 85,989,562.20, a 2.62% increase from CNY 83,797,269.36 in the previous year[20]. - The net cash flow from operating activities increased by 24.13% to CNY 134,264,037.72, compared to CNY 108,167,922.86 in the same period last year[21]. - The total assets at the end of the reporting period were CNY 4,009,013,370.59, a slight increase of 0.25% from CNY 3,999,155,370.93 at the end of the previous year[21]. - The net assets attributable to shareholders increased by 5.00% to CNY 1,805,849,333.38, compared to CNY 1,719,859,771.18 at the end of the previous year[21]. - The basic earnings per share for the first half of 2022 was CNY 0.1597, up 2.62% from CNY 0.1556 in the same period last year[22]. - The diluted earnings per share also stood at CNY 0.1597, reflecting the same growth of 2.62% compared to the previous year[22]. - The weighted average return on equity decreased by 0.25 percentage points to 4.88% from 5.13% in the previous year[22]. - Operating profit was reported at 9,683.80 million yuan, a 5.30% increase from 9,196.58 million yuan in the previous year[31]. - The total profit for the first half of 2022 was ¥98,305,633.03, up from ¥92,979,098.78 in the first half of 2021, marking a 5.0% increase[122]. Revenue and Sales - The company achieved a total electricity generation of 26,284 million kWh, a 9.50% increase from 24,005 million kWh in the same period last year[31]. - The total electricity sales reached 204,901 million kWh, reflecting a growth of 14.61% compared to 178,775 million kWh in the previous year[31]. - The natural gas sales volume was 9,285 million cubic meters, up 3.24% from 8,994 million cubic meters year-on-year[31]. - The water sales volume increased by 21.14% to 2,918 million cubic meters, compared to 2,409 million cubic meters in the same period last year[31]. - The company’s electricity sales in Leshan accounted for 12.95% of total sales, a decrease of 1.06 percentage points compared to the previous year[26]. - The natural gas sales in Leshan accounted for 9.98% of total sales, an increase of 0.20 percentage points year-on-year[26]. Cash Flow and Investments - The net cash flow from investment activities showed a significant improvement, decreasing losses by 34.97% to -¥82,127,589.54 from -¥126,296,776.88[42]. - The net cash flow from financing activities decreased by 16.74% to -¥65,462,086.89 from -¥78,621,822.01 year-on-year[42]. - The cash inflow from financing activities totaled CNY 565,743,200.00, an increase of 49.0% compared to CNY 379,766,168.00 in the first half of 2021[128]. - The net cash flow from financing activities was -CNY 65,462,086.89, an improvement from -CNY 78,621,822.01 in the same period last year[128]. Operational Challenges - The company faces significant risks in its electricity business due to the transition from traditional sales pricing to a profit model based on transmission and distribution pricing, which negatively impacts operations[55]. - The natural gas business is under pressure from rising upstream prices and a shrinking installation market, leading to reduced profitability[56]. - The water supply business is experiencing losses due to unchanged sales prices and declining installation projects, exacerbated by increased market competition[56]. Strategic Initiatives - The company plans to enhance its electricity business by focusing on key industrial bases and integrating resources to reduce costs and improve efficiency[57]. - The company aims to manage natural gas pricing effectively and secure government subsidies for safety improvements and old pipeline renovations[58]. - The company is exploring diversified water service models and seeking government support for water price adjustments to reverse losses[58]. - The comprehensive energy service business is set to expand by leveraging energy data resources and entering carbon trading markets, aiming for a more integrated service model[58]. Governance and Management - The company held its annual general meeting on April 28, 2022, where several key proposals were approved, including the 2021 financial report and the 2022 budget report[62]. - The company appointed Qiu Yongzhi as the new general manager on May 23, 2022, with a term aligned with the 10th board of directors[66]. - The 10th board of directors was elected on May 23, 2022, with a term from May 23, 2022, to May 22, 2025, including independent directors Jin Ximeng, He Shuguang, Ji Li, and Pan Ying[66]. - The company’s financial decisions and governance changes reflect a strategic focus on stability and leadership continuity[67]. Social Responsibility and Community Engagement - The company donated 600,000 yuan in 2022 to support rural revitalization efforts, focusing on industry development and tourism[78]. - The company constructed 12.4 kilometers of industrial roads in the village to enhance agricultural product sales and attract investment opportunities[81]. - The village secured over 6 million yuan in project funding for rural tourism development, including the construction of a cultural corridor and various infrastructure improvements[84]. - The average income of 71 poverty alleviation households reached 16,500 yuan, with a projected year-on-year growth of 12%[85]. Financial Instruments and Risk Management - The company assesses expected credit losses based on the entire duration of receivables and contract assets, with historical default rates for notes receivable at zero, leading to an expected loss rate of 0%[190]. - The company categorizes receivables into several groups for expected credit loss calculations, with loss rates ranging from 3% for receivables within one year to 90% for those over five years[191]. - The company maintains a robust framework for managing financial instruments, focusing on minimizing credit risk and ensuring compliance with accounting standards[196].